A trader known for his timely altcoin calls thinks a memecoin is gearing up for a big upside burst.
Pseudonymous analyst Bluntz tells his 261,500 followers on social media platform
According to Bluntz, WIF is issuing multiple bullish signals, indicating that it may witness a relief rally before continuing the downtrend.
“Even though I’m thinking of a high time frame WIF looks ready and destined for $1, I also believe a 50% bounce could be on the cards first.
We can see five waves from the $4 lower high and nice bullish divergences at the four, eight and twelve hour mark. [charts]. We expect a countertrend ABC to around $3-3.4 to bring everyone back in. In my opinion, shorting these levels is absolutely not smart.”
Bluntz practices Elliott Wave theory, a technical analysis approach that attempts to predict future price action by following the psychology of the crowd that often manifests itself in waves. According to the theory, a bearish asset often witnesses a five-wave move to the downside, followed by a three-wave ABC correction to the upside.
Based on the trader’s chart, he appears to be predicting that WIF has completed a five-wave move down and is now about to unleash an ABC bounce.
But after the rebound, Bluntz sees the WIF dropping to around $1.
At the time of writing, WIF is trading at $2.57.
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Generated image: Midjourney